Considering starting a tourism business? Here’s what you need to know

Lamont Pridmore - Accountants

Deciding to set up a tourism business is an exciting, yet daunting, prospect.

Tourism businesses contribute a lot to the economy, and the types of business in this industry are, seemingly, endless.  

So, your first port of call is to zone in on the type of business you want to run; this will then inform how you structure your business plan.

What type of businesses are there?

Usually, the businesses that first come to mind include accommodation and travel agencies, however there are many more types of tourism businesses.

Dependent on the location you are in, there may be opportunities to offer tour operating services or guided tours.

Hospitality businesses also play a role here, as they may be subject to seasonal visitors. Businesses such as these are any food or drink business located in a tourist hotspot, ranging from food seaside fish and chip shops to ice cream parlours.

How will you sustain your income?

Linking to the business you decide to run, you must take into account whether your revenue will fluctuate throughout the seasons.

If you are relying on the UK weather to attract customers, we all know this can be very unreliable, so your income is not always guaranteed!

Therefore, you must factor this into your business plan and ensure you can keep the business afloat during the off-peak season.

Some ways that you could do this include:

  • Having a reduced level of staff during off-peak seasons (you could do this by hiring temporary staff for the busy seasons)
  • If you run a business that offers accommodation, consider offering a reduced rate during off-peak seasons
  • Increase opening hours during peak times, such as the summer holidays, and consider including entertainment to win business.

Need advice on your business plan? Contact our team today.